It seems that Gold will not fall below $2500 (~Rs 73000) in the upcoming months due to the expectation of lower interest rates, the continued elevated geopolitical risk, and the uncertainty surrounding the Trump administration’s implementation of protectionism policies.

The expectation of lower interest rates, ongoing elevated geopolitical risk, and uncertainty around implementing protectionism policies under the Trump administration are the main reasons demand will get supported and find a floor for gold prices around $2500 (~Rs 73000) in the coming months and won’t fall below this level.

As gold prices have given around 30% returns this year, we will likely witness a bout of profit-booking by hedge funds and ETFs in December, which might put pressure on the prices. But amid geopolitical worries, prices will stay above $2500 (~Rs 73000).

Gold and Silver saw safe-haven flows last week, and rising tensions between Russia and Ukraine caused renewed unease in the markets. I now anticipate impending buying exhaustion this week in precious metals.

Renewed geopolitical tensions will overcast the Trumponomics and precious metals prices will rebound again this week. Gold prices have made a short-term bottom now and are expected to rebound towards Rs 75000 and Rs 77000 and silver to Rs 92000 and Rs 95000.

Gold and Silver were dumped by 2.5% and 4% last week respectively as several key events caused a lot of price volatility. US Election and announcement of Trump’s Victory, then US FED and BOE cutting interest rate by 25 bps.

Gold has been trading in the up-trend channel for the last year since $1850 (~Rs 56000). Immediate resistance in this channel is around $2800 (~Rs 80000), and support is around $2550 (~Rs 74000). The bullish view is intact as long as gold prices are in this up-trend channel.

Rising for the 23rd week in a row so far in 2024, the price of gold in US dollars has surpassed $2747 (~Rs 78200), up more than 3% from the previous week. While Silver gained 10% in only one week, reaching a high of about $34.32 (~Rs 98220).

Due to geopolitical concerns, the price of gold has continued to rise exponentially, reaching as high as $2700 this week. However, on Friday, prices began to decline again, as stronger-than-expected US employment data suggested that the labour market is still robust and that the Federal Reserve will probably soften policy by 25 basis points.

Gold accomplished a new all-time high this week of $2700 (Rs 76000), capping its third straight week of gains. Following gold’s recent climb, silver has surged as well. Its highest pricing since December 2012 was $33 (Rs 96400). Subsequently, the ratio of gold to silver dropped to 82, the lowest since mid-July.

Gold is maintaining strong bullish momentum and prices touched a new record high of $2656 (~Rs 75100) today, driven by a weakening U.S. dollar and the expectation of further rate cuts by the Federal Reserve.

Gold prices reached a new historical high of $2585 (Rs 73500) due to a weaker dollar and increased expectations of a 50-bps rate cut by the Fed.